As already reported in the last few weeks, house prices are rising at a rate we haven’t experienced for a few years now (since 2006). This rise and a growing demand have resulted in a rise in the number of homes coming onto the market, according to research from the Royal Institution of Charted Surveyors (RICS).
The survey follows on from last week’s Halifax report which suggested that House Prices were up 5.4% on this time last year. The poll of estate agents conducted by RICS showed the fastest prices since their peak in late 2006 as many of the new government schemes are actually improving people’s access to mortgages. This of course doesn’t come without its worries, with RICS warning that prices are at risk of rising to extreme heights, potentially causing another house price bubble, as the Chancellor mentioned earlier this week. However, despite these improving conditions resulting in people putting properties on the market – demand is still high.
These aforementioned government schemes such as Help-to-buy and Funding for Lending whilst improving access to mortgages have also resulted in an influx of first-time buyers on the market. It has been suggested by Your Move that up to 26,000 first-time buyer transactions took place in July.
However, this isn’t just a trend occurring in London, RICS has said that all regions across the country are beginning to experience some growth. The survey of estate agents expected prices to rise across Britain, on average, increasing by 2.2% in the next year and 4.4% in the next 5 years. Savills have even suggested that we could be returning to a similar market to the 90’s although they do not expect this to last.
Ultimately, government schemes such as Help-to-Buy have had a significantly positive effect on the market over the last few months, although it remains to be seen whether this positive change will benefit people in the long run as this is still a fragile market.